Trusts can be an essential part of college planning, as it is vital to consider college costs in the context of your overall finances, including your estate and wealth transfer plans.

Considering Your Estate

Trusts can be an essential part of college planning, as it is vital to consider college costs in the context of your overall finances, including your estate and wealth transfer plans.

Section 2503(c) trusts

These trusts are created to give the trustee control over the money until the beneficiary turns 21, enabling the parent or grandparent to ensure that the money is used for education rather than other purposes.

529 plans within a trust

Many 529 plans allow for a contingent owner to take over in case the owner becomes unable to manage the plan. Naming a trust as the contingent owner may work for grandparents who want the peace of mind of knowing their wishes will be carried out by the trustee of their trust. However, 529 plans can only have one beneficiary at a time, so special care should be taken if a trust has multiple beneficiaries.

Estate tax considerations

Funding your next generations' educations through a Health and Education Exclusion Trust (HEET) may provide exclusions to your estate's taxable assets. Ask your Wealth Advisor if this strategy is right for your estate plan.

This information is general in nature and is not intended to be legal, tax, or financial advice. Although Regions believes this information to be accurate, it cannot ensure that it will remain up to date. Statements or opinions of individuals referenced herein are their own—not Regions'. Consult an appropriate professional concerning your specific situation and irs.gov for current tax rules. Regions, the Regions logo, and the LifeGreen bike are registered trademarks of Regions Bank. The LifeGreen color is a trademark of Regions Bank.

We hope to see you again soon!

And You're Off.

You’re about to leave Regions to use an external site.

Regions provides links to other websites merely and strictly for your convenience. The site that you are entering is operated or controlled by a third party that is unaffiliated with Regions. Regions does not monitor the linked website and has no responsibility whatsoever for or control over the content, services or products provided on the linked website. The privacy policies and security at the linked website may differ from Regions’ privacy and security policies and procedures. You should consult privacy disclosures at the linked website for further information.